Global private equity dealmaking slows down amid headwinds
Global private equity (PE) dealmaking started to slow down in the second quarter of the year amid uncertainty and recent turmoil over tariffs.
The value of buyout deals in April 2025 was 24% below the monthly average for the first three months of the year, while the number of deals fell 22%, according to Bain & Company.
'Dealmaking and exits are hit by market and economic headwinds triggered by recent turmoil over tariffs,' the consultancy firm said.
The trend is in contrast to the first quarter of the year, when total deal value amounted to $189 billion, the highest since the second quarter of 2022, and around double the $95 billion in Q1 2024.
'The emerging weakness evident in Q2 is a direct consequence of the uncertainty injected into PE players' long-term models by tariff volatility, just as investors' confidence was beginning to return,' Bain noted.
The slowdown is expected to continue in the short term, but Bain & Co noted that there are still opportunities amid the present uncertainties.
'There's nothing fundamentally broken in the market. Buyers and sellers can still transact, and history shows that strategic buyers with a strong M&A agenda remain active in turbulent times,' said Hugh MacArthur, chairman of the global Private Equity practice at Bain & Co.
'In any disruption there are winners and losers – and the best opportunities often come at the most extreme moments of uncertainty, something that's still true in 2025.'
(Writing by Cleofe Maceda; editing by Seban Scaria)
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